Why Village Farms International Inc (OTCMKTS:VFFIF) Needs to be on Your Radar

While there were a number of
monster breakouts in the cannabis patch in recent days, one of the most
impressive and interesting is found on the chart for Village Farms International Inc (OTCMKTS:VFFIF). Shares blasted to
new multi-month highs on a major jump in volume on Monday, ramping as much as
17%. To fill out the story, the company just announced that its 50%-owned joint
venture for large-scale, low-cost, high-quality cannabis production, Pure Sunfarms,
received from Health Canada the sixth amendment to the cultivation license for
its 1.1 million square foot greenhouse in Delta, BC (the Delta 3 facility).

According to the release, “This
amendment permits Pure Sunfarms to expand its cannabis production area by
approximately 138,000 square feet to a total of approximately 825,000 square
feet. With this amendment, the entirety
of the first three quadrants of the 1.1 million square foot Pure Sunfarms
facility is now licensed for cultivation. The newly licensed area is expected
to be fully planted and in production this week.”

Village Farms International
Inc (OTCMKTS:VFFIF) promulgates itself as a company that, together with its
subsidiaries, produces, markets, and distributes greenhouse-grown tomatoes,
bell peppers, and cucumbers in North America.

The company operates in two segments,
Produce Business and Energy Business. It also owns and operates a 7.0 megawatt
power plant from landfill gas that generates and sells electricity to British
Columbia Hydro and Power Authority.

Village Farms International,
Inc. markets and distributes its products under the Village Farms brand name to
retail supermarkets and fresh food distribution companies, as well as produced
under exclusive arrangements with other greenhouse producers.

The company was formerly known
as Village Farms Canada Inc. and changed its name to Village Farms
International, Inc. in December 2009. Village Farms International, Inc. was
founded in 1989 and is headquartered in Delta, Canada.

According to company
materials, “Village Farms International, Inc. is one of the largest and
longest-operating vertically integrated greenhouse growers in North America and
the only publicly traded greenhouse produce company in Canada. Village Farms
produces and distributes fresh, premium-quality produce with consistency
365-days a year to national grocers in the U.S. and Canada from more than nine
million square feet of Controlled Environment Agriculture (CEA) greenhouses in
British Columbia and Texas, as well as from its partner greenhouses in British
Columbia, Ontario, and Mexico. The Company
is now leveraging its 30 years of experience as a vertically integrated grower
for the rapidly emerging global cannabis opportunity through a 50% ownership of
British Columbia-based Pure Sunfarms, Corp., one of the single largest cannabis
growing operations in the world.”

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As noted above, VFFIF just announced that its 50%-owned joint venture for large-scale, low-cost, high-quality cannabis production, Pure Sunfarms, received from Health Canada the sixth amendment to the cultivation license for its 1.1 million square foot greenhouse in Delta, BC (the Delta 3 facility).

Traders will note 76% piled on
for shareholders of the name during the trailing month. Moreover, the listing
has registered increased average transaction volume recently, with the past
month seeing a bit over 110% beyond its prior sustained average level.

“The Pure Sunfarms
cannabis operation continues to execute on plan, steadily expanding production
towards its target of reaching full run rate annual production of 75,000
kilograms in the first half of this year,” said Michael DeGiglio, CEO of
Village Farms. “As the Canadian cannabis market continues to be challenged
by a supply shortage, Pure Sunfarms has already established itself as one of
the premier suppliers, with a reputation for industry leading operations and
quality, consistency and safety of product. Village Farms, with our decades of
experience as a vertically integrated large-scale greenhouse operator, is proud
to have played an integral role in Pure Sunfarms’ continuing success.”

At this time, carrying a capital value in the market of
$317.08M, VFFIF has a significant war
chest ($7.6M) of cash on the books, which is balanced by about $34.9M in total
current liabilities. VFFIF is pulling in trailing 12-month revenues of $190.3M.
However, the company is seeing declines on the top-line on a quarterly y/y
basis, with revenues falling at -7.5%. We will update the story again soon as
further details emerge. Sign-up for
continuing coverage on shares of $VFFIF stock, as well as other hot stock
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Disclosure: we hold no position in $VFFIF, either long or
short, and we have not been compensated for this article.

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